Marks & Spencer's online sales were the only bright spot in an otherwise poor Christmas season for the retailer.

Web transactions through M&S Direct were up 78 per cent thanks to a relaunch of the site earlier in the year, according to the company - which posted a 2.2 per cent decrease in overall sales in the third quarter.

Predictions for 2008 are also gloomy.

“We expect trading conditions to remain tough throughout the year," said chief executive Stuart Rose.

"But we are well positioned with a strong product offer and better than ever values across our business and M&S Direct continues to make good progress.”

Last year's revamp of the website, in partnership with Amazon, improved functionality, searching and navigation, says M&S. Product catalogues online were also expanded to offer full lines of accessories and jewellery, as well as fringe sizes for clothing lines.

In November, the company reported an increase of 60 per cent in online sales. Rose's target is for £500m of sales to be made through the e-commerce channel by 2010.